PHILIPPINE Savings Bank (PSBank), the thrift banking arm of the Metrobank Group, posted a net income of P1.73 billion by the end of the third quarter of 2015, fueled by strong consumer loans growth.
In a statement, the bank said interest income from loans and receivables rose 12.2 percent to P7.3 billion driven by consumer loans growth.
It said gross loan portfolio rose 17.6 percent to P111.8 billion primarily led by the robust growth in auto and mortgage loans. Consumer loan bookings registered an upswing of 29 percent year-on-year.
Even with the growth in its loan portfolio, PSBank said it kept its non-performing loans (NPL) ratio low at 1.1 percent. As of end-September 2015, NPL coverage was at 84 percent.
Total deposits reached P127.1 billion, up 3.6 percent from last year, with low cost funds increasing by 19 percent.
Return on equity was at 12.5 percent, it said. Last year’s reported net income included one-time gains from asset sales in relation to Basel III preparation.
Core income was up 18.7 percent year-on-year.
PSBank said it further focused on strengthening its core business with aggressive sales initiatives and improvements in operational efficiencies through continuous automation of processes. Net margins and fee income grew 9.1 percent to P7.1 billion.
As of end September 2015, PSBank’s total resources closed strong at P159.5 billion, up 5.5 percent from the same period last year.
This translates to a capital adequacy ratio of 18.2 percent, well above the 10 percent minimum required by the Bangko Sentral ng Pilipinas (BSP), it said.
Its Tier 1 capital ratio was 12.5 percent, also higher than the 8.5 percent requirement.